In Fedora 10 and earlier the virtual guest console is limited to a screen resolution of 800x600. The PS2 mouse pointer operates in relative coordinate mode, meaning the guest pointer does not track the local client pointer 1-for-1. In Fedora 11 the goal is to have the screen default to at least 1024x768 resolution out of the box. New installs of F11 will also be provided with a USB tablet and X in the guest will automatically detect & configure this in absolute coordinate mode out of the box. This will result in a mouse pointer which tracks the local client pointer 1-for-1.

Increased screen real-estate of 1024x768 will improve usability of programs in the guest, in particular anaconda and firstboot which struggle to fit their whole UI into the current 800x600 real estate. Users of virt-manager and virt-viewer will have a mouse pointer which works without requiring a pointer grab

Previous Fedora virtual guest consoles were limited to a screen
resolution of 800x600, and the PS2 mouse pointer operated in
relative coordinate mode. This prevented the guest pointer from tracking
the local client pointer one for one.

Fedora 11 provides more accurate mouse pointer positioning and higher
screen resolutions for virtual machine consoles.
Fedora 11 guests default to a screen resolution of at least 1024x768,
and are provided with a USB tablet in absolute coordinate
mode. This results in a mouse pointer which tracks the local client pointer one
for one.